Parents navigating separation and divorce face potentially tens of thousands of dollars in surprise costs if they head to court to resolve disputes involving their children and finances, experts warn, raising the pressure to reach a settlement.
Expensive reports on family dynamics, fees for expert witnesses and document production, and legal costs thrown away when hearings don’t proceed on the scheduled day are among a litany of hits to the hip-pocket.
Jodylee Bartal, an accredited specialist in family law and a principal solicitor at Melbourne-based firm KHQ Lawyers, said “perhaps the biggest shock of all” for clients was spending time and money preparing for a final hearing and discovering on day one that it would not proceed.
Double-listing matters is a longstanding practice which reflects that a case may settle on the first hearing day, enabling another matter to proceed in the busy court.
Family reports
Experts also said the cost of family reports, which are prepared by an expert such as a social worker, counsellor or psychiatrist, were increasing markedly.
Michael Tiyce, principal of Sydney law firm Tiyce & Lawyers, said the reports were an important piece of evidence in most parenting disputes and typically cost thousands.
“For a family report conducted by a highly respected clinical psychologist who regularly gives evidence in the court, you would be looking at $35,000-plus, which involves assessment of the parents and child over two days and reading of all the relevant material provided to them,” Tiyce said.
“This price can of course increase depending on the amount of work that is required to be undertaken – for example, if there are multiple children with complex psychiatric presentations and lots of reading of subpoenaed material, I have seen that cost blow out to $80,000.”
The reports are typically written by private experts and the costs are borne by the parties, although some reports are prepared by internal court experts at no cost.
Tiyce said family lawyers were required to provide clients with detailed estimates and cost notices which would usually include these estimates, but “they are still often an unwelcome surprise”.
“It certainly adds to the financial load of conducting parenting litigation but is inevitable in a court and legal system that continues to be chronically underfunded by the government.”
Bartal said family reports were more expensive in Sydney.
“In Melbourne they are between $8500 and $12,000,” she said.
Transcript
Sergi said the cost of obtaining transcripts of family law hearings, which are required when filing an appeal, could add up to thousands of dollars a day.
Daily hearing fee
There are also court fees for filing the case and hearings. Bartal said the party who filed the proceedings, known as the applicant, was responsible for paying the “setting down fee” of between $820 and $1115 for a defended final hearing, and a daily fee of the same amount for each day from day two onwards.
Valuations
Bartal said that valuing a business for family law purposes was another costly area.
“The costs can be even higher where the valuer is asked to value the business at two different points in time, for example, at separation and at the present date,” Bartal said. “A business valuation will typically cost upwards of $15,000.”
Witness, subpoena costs
Sergi said that “fees to appear at court to give evidence can also be charged by expert witnesses such as private family report writers or valuers, again potentially creeping into the thousands of dollars”.
Issuing a subpoena to compel a person or organisation to produce documents to the court could also prove an expensive exercise. Sergi said those costs might also add up to thousands.
How to avoid the costs
While lawyers can limit some costs, such as by exploring other options to obtain documents rather than issuing subpoenas, many costs can only be avoided if the cases are resolved outside court.
But in some disputes, including in cases involving family violence, it may not be possible to reach an out-of-court agreement.
The high cost of family law proceedings are in federal MPs’ sights. Zali Steggall and Monique Ryan have called on Prime Minister Anthony Albanese to set up a national inquiry into the family violence crisis amid calls for an urgent injection of funds for legal assistance services.
Ryan said last month that her constituents in Melbourne’s Kooyong “often tell me about their difficulties with financial burden and the family law system after leaving violent or coercive relationships”.
Source: Family law fights and the litany of hits to the hip-pocket